Let's talk money

[B52]

I was pleased with the reaction and comments I got on my first post in the lounge and wish to get your opinion on this!

I am 29yo, at this age my biggest income is generated from the number of hours I do at work. I started investing with a bank in a mutual fund, I took a mix of portfolios; low, moderate and high risk ones. since 18 months the results are shit.
I heard this many times, in the market you have to look for the outcomes of your investment in long term not a short term perspective.

Last month I learned about online banking institutions, oaken financials, and to my luck they have this GIC at rate of 2.75% (sounds juicy compared to the cheesy 0.4-0.75% offered by TD, scotia, or other banking institutions.
I signed up with them and so far everything seems good.

My question for you is, Lets say you have a 100k$ or more, what are your investment strategies, how to hit big, hoping not to be hit big at the same time.

i know many of the girls I met in the business might be interested to know about this as well.

 

[MisterPep]

Real estate. Pays by itself.

Stock market is not a game. Invest in what you know and be prepared.

 

[B52]

Real estate. Pays by itself.

Stock market is not a game. Invest in what you know and be prepared.

the problem is that I don't know shit in real estate neither.
i am in Montreal, from what I understood from my readings, the real state market is not doing great neither nowadays...

 

[B52]

A family member who owns a couple of buildings told me the exact same thing last week.

Too many guys saw the Wolf of Wall Street and think they can make it big on the market overnight. I'm definitely keeping an eye on this thread, thank you gentlemen.

It does not take a movie to start dreaming big. Unfortunately I have no time to watch movies, I rather spend the 2 hrs with an sp instead

 

[sam311]

There is no magical way to get rich big and fast. Stock market can produce about 10% on a long-term basis, 3-4% dividend and 6-7% gain. But one should be extremely patient. Avoid at all cost the mutual funds but ETFs are ok.
With 100K you can build a nicely diversified portfolio with ETFs. After putting aside an emergency fund, covering 3 to 6 months expenses, invest in Vanguard ETFs (30% Cdn, 30% US, 20% International, all equities fund given your age).
When you get to 500K and more you might go with individual stocks, but you need to do lots of homework if you go DIY.

 

[Ricky bonds]

the problem is that I don't know shit in real estate neither.
i am in Montreal, from what I understood from my readings, the real state market is not doing great neither nowadays...

I heard the same thing in regards to condos by someone extremely well placed in property investments. He suggested staying away from condos, but said that single dwelling homes will always go up 10k a year in the right areas.

 

[BookerL]

Real estate. Pays by itself.

Stock market is not a game. Invest in what you know and be prepared.

http://merb.cc/vbulletin/showthread...-Market&highlight=stock+market+or+real+estate


A interesting read since real estate and stock market are compared .

I am myself in real estate in 2 Provinces ,Quebec in Montreal and Surrey (Cloverdale and Newton)B.C.
Having tenants is way easier in B.C



Cheers



Booker

 

[BookerL]

100K$ is not enough for buying buildings these days. Maybe enough for condos, but they are not ideal investment. Maybe just stick with your GIC.

Hello Tony and all

How do you arrive to the conclusion that 100 k isn't enough to purchace a small plex?

Cheers


Booker

 

[ricky01]

the problem is that I don't know shit in real estate neither.
i am in Montreal, from what I understood from my readings, the real state market is not doing great neither nowadays...

The actua market is favorable for buyers. If you have liquidity, the timing is great.

 

[Titilleur]

Faire fructifier ses avoirs nécessite de la patience, de la chance et surtout beaucoup de volonté d'apprendre à développer son flaire... Veux-tu être épargnant ou investisseur? 2,75% c'est à peine de quoi battre l'augmentation du coût de la vie. On ne devient pas riche en se collant sur l'inflation. Si tu peux doubler ou même tripler le ratio de l'inflation, tu vas y trouver ton compte.

L'immobilier n'est pas une valeur sûre... Pour chaque personne qui a réussit à s'enrichir avec l'immobilier, il y en a des centaines qui ont connu des déboires... La croissance moyenne de la valeur d'une propriété, après toutes les dépenses (taxes, entretien, etc.) frôle les 2% par année. C'est pourquoi ça prend de la chance et une volonté d'apprendre. Le gros problème avec l'immobilier c'est que si tu te trompes, ça coute cher et tu risques de rester pris avec ton investissement. Tu ne peux pas juste te débarrasser d'une bâtisse sans perdre beaucoup d'argent. En passant, on ne fait pas d'argent avec la bâtisse qui sert de résidence principale...

Investir dans des titres n'est pas une valeur sûre... On entend parler uniquement ceux qui ont réussit... Les perdants ont honte et ne s'en vantent pas... C'est quand même plus facile de corriger une erreur. Pourvu que tu ne tombes pas "amoureux" d'un titre... Tu fais de l'argent en vendant, donc il faut savoir quand vendre... 80% des investisseurs ne battent pas les indices boursiers. Il faut donc être patient et faire ses devoirs.

Petite lecture intéressante au sujet de gens qui ont fait leurs devoirs: http://www.lactualite.com/lactualite-affaires/les-plus-gros-celi-au-canada/.

 

[ricky01]

You can find loans with 10% cash down, sometimes, you can deal 0 cash down. But again, it's all about enough liquidity.

 

[sinner]

For stocks, you'll need to decide how much risk you can take. If you can't take the heat (10% loss not uncommon), stick with GICs. There's no harm in that. It's your money, and you gotta sleep at night. If you want more risk, but don't have the time or inclination to manage your portfolio consistently, stick with an index fund. If you want to start with individual stocks, stick with large cap until you build a good selection of stocks.

 

[BookerL]

Hello,
Yes you could buy 400k duplex, triplex but revenue is not that great, usually it is good if you live inside. For me, 6-8 plex is start of investment, and 20+ are ideal.

Hello Tonyw

The ideal is actually to buy a property with low revenues ,the reason they won't be any line ups on it ,
I favor 2 to 6 plexes easier to finance and easier resale because you have wider population pool that can afford it then a 20 plex .

Its better to own more properties to equal the same amount of doors ,you are splitting the risk !

That is what I have been doing ,and aim different markets .


Cheers



Booker

 

[juulik]

Hello all, interesting topic…bank returns these days are terrible (and I even hear that they might have negative interest rates in the future??) …I am looking for better returns also and was looking at rental properties again…but now I see 2-3-4plex properties are selling for 15+ times the revenue…some duplex I’ve seen even at 20x revenue…at those ratio’s how can anyone make any decent returns??… I think people are buying those because they will live in one unit and are just over reaching on them also…you can find banks to give you a loan with only 10% down on these smaller properties and even more likely if you say you will live in it (you might have to pay more for mortgage insurance tho) this would probably explain the long lineups you see.

For me, it seems anyways that revenue property prices in this 2-3-4plex range seem to increase slowly but the rents are stagnant or do not pay for enough of the mortgage for it to be worth the headaches. You can only hike ~2% a year and tenants can contest even that! If you plan on buying a property with low rents with the ambition to raise the revenue, you will have to go to the regie to try and remove tenants and good luck with that…

I never bothered to check revenue property in ONT or BC due to all the real estate speculations I read but I will look now. Booker, if you don’t mind me asking, are revenue properties booming in those areas too?

 

[jalimon]

Interesting thread. More money means extra for the hobby

At 29 years old I would suggest:
Take 50-70k down and buy real estate. I assume it's your first property so avoid condos, buy a duplex/triplex and move in yourself. 3 rules, location, location location. Did I mention it should be well located?
This way you will learn if real estate is for you and at least you will not throw away money each month for nothing...

Take the extra money and put it under a auto-manage investor account (via a CELI is ideal). Start with iShares maybe. Most important is to learn by yourself. DO NOT trust any bank account broker, they will only sell you stuff the institution ask them to sell you...

I myself never got to understand stocks well enough, and I lost too much money trusting strangers pretenting to know how... so I managed my extra money only via my CELI. During that time I have bought, renovated and sold 4 real estate in the last 15 years (while keeping a full time job), which gave me enough leverage to think retirement at 50 (my goal).

You are only 29, at that age I was just out of university with no money at all! To this day I still dont know how I was able to buy my first duplex

Good luck and Cheers!

 

[BookerL]

I never bothered to check revenue property in ONT or BC due to all the real estate speculations I read but I will look now. Booker, if you don’t mind me asking, are revenue properties booming in those areas too?

Hello Juulik

The real estate market is really different in B.C compared to Québec ,having tenants also .

The major différence no rent control, in Québec lowest price of the last month applies for new tenant,in B.C as much as can the market support for new tenant .

The other major diffèrence, non payment ,
In Québec the Onus is on the owner to take action to requested à éviction.
In B.C it's the that must make the requested to avoid eviction almost never happens.
Delays are way shorter.

My properties are in great et Vancouver


Cheers


Booker

 

[jalimon]

Hello Juulik

The real estate market is really different in B.C compared to Québec ,having tenants also .

The major différence no rent control, in Québec lowest price of the last month applies for new tenant,in B.C as much as can the market support for new tenant .

The other major diffèrence, non payment ,
In Québec the Onus is on the owner to take action to requested à éviction.
In B.C it's the that must make the requested to avoid eviction almost never happens.
Delays are way shorter.

My properties are in great et Vancouver


Cheers


Booker

Interesting Booker. But tell me how to make sure your property are well maintainted so far away? Do you pay one of the tenants (or offer monthly rebate) to take care of the property?

Cheers,

 

[EagerBeaver]

I have my money invested in Vanguard IRAs (mutual funds) like many Americans. American law allows you to reduce your taxable income by contributing some of your salary in an IRA. My employer matches my contributions. As long as you leave the money there and don't withdraw it before age 59 you don't get penalized. What this does is (a) reduces your taxable income because the IRA contributions don't count as income; and (b) creates a nest egg. My funds have shown a very steady growth.

I have to think Canadian law must allow something similar in order to incentivize citizens to save for retirement so they do not become government charges when they get older and can't work anymore.

 

[BookerL]

Interesting Booker. But tell me how to make sure your property are well maintainted so far away? Do you pay one of the tenants (or offer monthly rebate) to take care of the property?

Cheers,

I live in B.C.and have partners that also lives in B.C.
All my investissements are trough corporations.

Cheers

Booker

 

[sinner]

I have my money invested in Vanguard IRAs (mutual funds) like many Americans. American law allows you to reduce your taxable income by contributing some of your salary in an IRA. My employer matches my contributions. As long as you leave the money there and don't withdraw it before age 59 you don't get penalized. What this does is (a) reduces your taxable income because the IRA contributions don't count as income; and (b) creates a nest egg. My funds have shown a very steady growth.

I have to think Canadian law must allow something similar in order to incentivize citizens to save for retirement so they do not become government charges when they get older and can't work anymore.

We do, we have a registered retirement plan (RRSP). Based on what you earned the previous year, you can contribute to your RRSP and it reduces your taxable income.